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April 20, 2011

Helicopters Cambodia purchased

A Canadian firm announced it will buy the parent company of Helicopters
Cambodia for US$126 million, a move one company official hoped would
result in an upgrade of the business.

Canadian Helicopters Ltd, a
wholly owned subsidiary of Canadian Helicopters Group, negotiated a
deal during last week with the ailing South Canterbury Finance for its
Helicopters New Zealand subsidiary, which included its subordinate
business Helicopters Cambodia.

Kevin Treloar, General Manager at
Helicopters Cambodia, applauded the deal, saying his company now had
access to CHL’s broad base of equipment and expertise, which included
122 helicopters and a flight training school.

That in turn could help to improve Helicopters Cambodia’s operations, he said.

“We’ll
be exploring any opportunity, and hopefully it will result in an
upgrade of our business,” he said, but adding that it’s “too early to
tell” how those upgrades may play out.

Treloar also pointed to
the “very positive synergies between the two groups,” namely their
complementary seasonal operations and extensive histories as utility
helicopter services companies.

CHL operates in Canada mainly
between May and October, but now the company will extend its business
throughout the year thanks to HNZ, which has bases in Australia, New
Zealand, Cambodia and Laos, he said.

Both companies have been flying at least 50 years, according to their websites.

Canadian
Helicopters President and Chief Executive Officer Don Wall called the
acquisition a “transformational investment” for his company.

“Acquiring
HNZ will assist in providing greater stability as it extends the arm of
CHL’s existing operations in Canada, the United States and
Afghanistan,” where it supports United States efforts there, he said in a
statement.

“HNZ … will be a significant part of CHL’s growth plan as we look to the future,” he said.

HNZ
owns 33 helicopters and serves a number of industries, including oil,
mining exploration and tourism. In the twelve months ending December 31,
2010, the company earned NZ$28 million (US$22.1 million) before
interest, taxes, depreciation and amortisation, according to a statement
from CHL.

The sale comes as South Canterbury Finance sells
assets as part of a receivership set up by the New Zealand government,
which brokered a US$1.26 billion bailout for the lender back in August.

According
to a statement from McGrathNicol, receivers of South Canterbury, CHL
was selected “through a competitive sale process” that started after the
receivership was established.

At the time the receivership was announced, Kevin Treloar said his company was unaffected.

Yesterday,
he reiterated that point, saying that beyond the potential benefits of
the deal he sees no downside for Helicopters Cambodia.